Question

1. Assume you are asked to find the best ways to commercialize vegetables online.
   1. Identify the most important constraints for such a venture (e.g. the vegetables usually have a very narrow shipping window as they are highly perishable).
2. 2. Search and describe existing business models that are attempting to sell/deliver vegetables online. What are their shortcomings? (200 words essay min)
   3. What protocol stack would you propose for an e-Commerce system for this venture? Detail the architecture and the main functionality.

Answer 1

Bigbasket is Indias Number 1 online grocery platform which specialises in perishable food and daily food items.

These organisations face stiff challenges like maintaining frozen docks for perishable foods, low cost delivery for low order volumes, excessive competitive offers from mom pop stores and retail outlets, offering reverse delivery charges for inferior products .

To manage such problems it is highly important to achieve Supply chain management with huge delivery fleet and also deploy economies if scale through higher order volumes per delivery. Usage of ERP software and Artificial intelligence for customers profiling helps these firms achieve higher sales revenue and repeat purchases. Focus on social media marketing reduces costs and brings in impulse buyers as well thereby decreasing customers acquisition costs.

Cross selling and price bundling strategy with expansion into newer markets help them cut down long run average total costs and hence higher profitability . Secondly tieups with local mom and pop stores for warehousing as well as retail giants for collaboration in terms of delivery feet reduces overall expansion cost and hence achieves better on time delivery.

Along with this positioning as safest quality and lowest cost products is important to reduce customers switching cost and minimize threat from competitive market which is perfectly competitive. Strong focus on customer retention services and custoner relationship management using ERP software is nees if hour for long run growth.